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Wednesday, 8 February 2012

"Backhanders & Golden Handshakes Take Their Toll"

Old-age pension pot ‘empty in 30 years’


Dermot Grenham, chief actuary at the UK Social Security Demography and Overseas Pensions Government Actuary's Department, which wrote the report
Dermot Grenham, chief actuary at the UK Social Security Demography and Overseas Pensions Government Actuary's Department, which wrote the report

THE States’ old-age pension pot will be drained within 30 years, according to a new report by the UK government’s pension experts.

But the UK government actuary says that enough reserves have been built up so that politicians do not have to start making the hard decisions about reducing pensions, increasing contributions or delaying retirement age for another five years.

And that means that the Island should be out of recession and into recovery before the changes start to bite. The actuary’s report also said that applying a ‘triple lock’ annual increase to pensions – an automatic increase by the highest of Retail Prices Index, average earnings or 2.5% – would effectively undo the benefits of last year’s decision to increase the pension age to 67.

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